Regis No.

t

ECURITY

Top Secret,

DRAFT

LETTER

SIFICATION

To: Sir M Maclehose acak"

Sove lument Awa Hong Kong

Type 1 +

PUS

From

Telephone No. Ext.

Secret.

Confidential.

Restricted. Unclassified.

RIVACY MARKING

Department

In Confidence

You will

have Lean un undirgal un

Feo. Kolgan ww.ba).

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Juur?

MULTIFIBRE ARRANGEMENT

1. Donald Murray has shown me your letter of 3 September

yo NI have ensured that Ministers are fully aware of the argum

Cafa.

ento it contains: This reply has the approval of all the

Ministers concerned, including the Prime Minister.

September.

2. The Commission's chief textile negotiator, Tran Van Tinh,

came to London on 9 September. He gave representatives of

the Whitehall Departments concerned (including the FCO) an

outline of the approach to the negotiation of new bilateral

textile agreements which has already been approved by the

Commission and which will be submitted to the Council of

Ministers on 20

The approach is based on the

concept of concluding comprehensive agreements covering all

textile products, and the keeping of the totality of the

Community's low-cost imports of all products within internally

agreed Community limits which will stabilise imports at 1976

levels. The severity of controls will depend on the degree

of sensitivity of the products, which are divided into four

categories for this purpose. In this way, the Community will

hope to guarantee both security of supply to the exporting

countries and security against great increases in import

penetration to the Community's textile industry.

Commission also propose to make very considerable improvements

in the Community's GSP for textiles in 1979 (perhaps trebling

the volume covered). Hong Kong will be included on the same

basis as her competitors.

/ 3.

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Dd 108087 400M S&K 1/77

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